Course Objective Economics 1 Introduction to Economics The goal of Economics 1 is to give you a basic foundation in the principles and tools of microeconomic and macroeconomic analysis. Course Text Robert Frank & Ben Bernanke. Principles of Economics. McGraw Hill, 2 nd Edition. Copyright 2004. The text is available at ASUC and other book stores. A copy of the textbook is on 2-hour reserve at Moffit Library. Lectures Monday & Wednesday from 10am-12pm, with a 10 minute break at 11am. Course Enrollment Attendance will be taken in section for the First Week of classes. If you are enrolled, this will enable you to keep your enrollment status. If you are on waitlist status, this will give you priority for enrollment. It is your responsibility to know about University summer session policies on add/drop, refunds, etc. See http://www-summer.berkeley.edu. Requirements for Course Grade Please keep this syllabus handy and refer to it regularly. Attend lectures and sections, and complete the required reading, problem sets and exams. Problem Sets Midterm 1 Midterm 2 Final Exam Points 40 100 100 160 Score Weight 10% 25% 25% 40% You may take the course on a Pass/No Pass basis. C- is required for Pass. If you wish to audit the course, please inform us. Instructor s Contact Information Name Office Office Hours Phone Number Email Course web site URL* JAYA SIL 651 Evans Monday & Wednesday 1-2pm 642-7284 jaya@econ.berkeley.edu http://elsa.berkeley.edu/~jaya/econ1_summer03.shtml *: Or, go to the Economics Department Home Page http://econ.berkeley.edu and click on Course Pages at the top navigation bar.
Course Calendar: Important Dates July 2 July 9 July 14 July 23 July 30 August 4 August 6 August 13 Problem Set 1 Due Problem Set 2 Due Midterm 1 Problem Set 3 Due Problem Set 4 Due Midterm 2 Problem Set 5 Due Final Exam 10am-11:30am, 145 Dwinelle 10am-11:30am, 145 Dwinelle 10am-12pm, 145 Dwinelle NOTE: Problem sets are due at the start of lecture. GSIs will collect the problem sets in envelopes marked with your GSI s name. GSIs are not responsible for problem sets placed in mailboxes. Course Administration Exam Policy There are no make up exams. If you have a conflict with the final exam date, please take Economics 1 next semester. Midterm and final exams will cover required reading and material covered in lectures, sections and problem sets. If you need to be excused from a midterm exam for a reason that meets University standards, please inform us as soon as possible and certainly no later than 48 hours after the scheduled exam. You will need to submit official documentation giving the reason for your absence and score weights will be adjusted accordingly. Grading Exams are graded by GSIs as a team. If you think a question has been incorrectly graded, submit the exam with a written explanation to your GSI (within 2 days of getting back your exam). The exam will be given to the GSI who graded the question under concern. Problem sets are worth 10 points each and are graded by your GSI. Only the best 4 out of 5 scores will be used in calculating your final course grade. Answer keys will be available online at the course web site shortly after the due date. Sections Attendance will be taken the during first week of classes only. GSIs will use section time to: (i) present problems which help to further comprehension of course material; (ii) present new material (not presented in lecture) ; (iii) go over selected homework problems; (iv) review for exams; and, (v) go over exams. Academic Honesty & Fire Alarm Policy Our aim is to ensure that each of you is evaluated in a fair and honest manner. Therefore, we are very serious and very strict about academic honesty & fire alarm policies. In the event a fire alarm is pulled during an exam, collect your belongings and
take the exam on the East steps outside the main entrance to Dwinelle Hall. All students are held accountable for their actions according to the University s Student Code of Conduct. Special Accommodation If you have a need for a special accommodation, such as one authorized by the DSL program, please submit your forms with stated requirements to your GSI by June 30. Course Web Site The course web site URL is http://elsa.berkeley.edu/~jaya/econ1_summer03.shtml. Please check the web site regularly. Lecture slides and Notes (which supplement the readings) will be available online about 2 days prior to lecture at the course web site. On occasion, handouts may be given in lecture, as appropriate. Problems sets and other important course materials and information (eg. GSI OH) will be available online as well. A few paper copies of selected items posted online will be made available on the shelf outside 508-2 Evans, for those who do not have web access. Please inform us immediately if you expect to have difficulty with web access. Course Calendar: Lecture Topics & Reading The order of topics does not always follow the text exactly. As a general rule, always read the chapter introduction in addition to the specific pages listed in parentheses. If no pages are given, read the whole chapter. In some cases, as noted below, Notes based on relevant parts of the text, supplement the required text pages. I do this when I have to combine many different parts of the text or to supplement the text material. WEEK 1 Course Overview & Introduction to Core Principles Monday, June 23 Lecture 1 Overview of Course Content & Administration Scarcity & Opportunity Cost Chapters 1 (3-8), 2 (33-34, 37-39, 47-51 ) & 16 (401-4) Basic Model of Supply & Demand Wednesday, June 25 Lecture 2 Demand & Supply Chapter 3 Elasticity Chapter 4
Consumer & Firm Behavior WEEK 2 Monday, June 30 Lecture 3 Consumer Demand & Utility Maximization Chapter 5 (117-118, 120-9, 132-6) Firm Supply & Profit Maximization Chapter 6 (141-157, 160-161) Wednesday, July 2 Lecture 4 Perfectly Competitive Firm in the Long Run Chapter 8 (193-206) Efficiency & Social Optimum Analysis of taxes, subsidies and price controls Chapter 7 (167-176, 182-187) Happy July 4 th!!! Departures from Perfect Competition WEEK 3 Monday, July 7 Lecture 5 Monopoly, Natural Monopoly & Price Discrimination Chapter 9 (221-238) Strategic Behavior & Asymmetric Information Chapters 10 (251-260), 12 (309-311) & Notes Factor Markets Wednesday, July 9 Lecture 6 Labor and Capital Chapter 13 (328-336) & Notes Market Imperfections Wednesday, July 9 Lecture 6 Externalities & Public Goods Chapters 11 (277-291), 15 (373-384) & Notes WEEK 4 Monday, July 14 10am-11:30am Midterm Exam 1 Covers course material from week 1 through week 3 Sections cancelled afternoon Monday July 14 and all Tuesday, July 15
WEEK 4 (continued) Role of Government Wednesday, July 16 Lecture 7 Natural Monopoly, Pollution, Redistribution Notes Only Applied Microeconomic Analysis Wednesday, July 16 Lecture 7 Trade Chapter 16 Overview of Macroeconomics WEEK 5 Monday, July 21 Lecture 8 Output, Unemployment, Inflation Short Run vs Long Run Overview Chapter 17 (Recap on 436, 437-8, 441-442) & Chapter 25 Measuring Economic Activity: GDP, Prices, Unemployment Chapters 18 (449-460, 466-470), 19 (475-483) & Notes Long Run Monday, July 21 Lecture 8 Growth, Productivity, Wages, Unemployment Chapters 20 (505-522 ), 21 (546-559) & Notes Wednesday, July 23 Lecture 9 Short Run Monday, July 28 Lecture 10 Savings, Investment & Capital Formation Chapters 22, 24 (617-627) & Notes WEEK 6 Basic Keynesian Model Chapter 25 (review as necessary) & Chapter 26 (663-682) & Chapter 26 Appendix A Role of Government: Stabilization Policy Monday, July 28 Lecture 10 Wednesday, July 30 Lecture 11 Fiscal Policy Chapter 26 (682-691) Monetary Policy Chapter 23 & Chapter 27 & Chapter 27 Appendix
WEEK 7 Monday, August 4 10am-11:30am Midterm Exam 2 Covers course material from week 5 and week 6 ONLY Inflation, Aggregate Demand & Aggregate Supply Sections cancelled afternoon Monday, August 4 and all Tuesday, August 5 Monday, August 4 Lecture 12 Extension of Basic Keynesian Model Notes Only International Macroeconomics Wednesday, August 6 Lecture 12 Exchange Rate & Monetary Policy Chapter 29 WEEK 8 Monday, August 11 Lecture 13 Catch up & Review Wednesday, August 13 Final Exam 10am-12pm 145 Dwinelle Covers Material From Week 1 through Week 8 Reading Tip Although I have given specific pages for required reading, summer term moves very fast and you do have to keep up. Here is a tip you might use to help absorb the material. Read according to the following procedure. First, read the introductory pages; the authors usually give a fun & interesting story. Second, read all the boxed Recaps within the required pages. Third, read all the margin definitions within the required pages. Fourth, read the required pages word for word, stopping to work through examples, etc. The problem sets will give you an opportunity to check your comprehension, prior to exams.